The individual(s) designated to receive the benefits from a policy.
Critical Illness Cover
Pays out a lump sum if you are diagnosed with a specified critical illness.
Typical illnesses include:
Alzheimer’s Disease (before age 60)
Benign Brain Tumour
HIV - caught in the UK from a blood transfusion, physical assault or at work
Loss of sight
Major Organ Transplant
Motor Neurone Disease
Third Degree Burns
Total Permanent Disability
Death in service
Life insurance an employer provides that may be linked to a pension scheme. As cover ceases should you change jobs this is not normally suitable for mortgage protection.
Decreasing term insurance
This usually provides a lump sum in the event of death during the policy term. The amount of cover (sum assured) decreases over the term of the plan. This type of cover is usually used as the basis of a Mortgage Life Insurance plan to protect the declining balance of loan.
The amount of time after a claim is made before the insurer pays the policy benefit. Typically Income Protection policies will have a choice of deferred periods designed to fit in with typical employer sick pay benefits.
Premiums will stay the same throughout the term of a policy.
Provides income in the event of you not being able to work due to ill health. Payments are usually paid monthly until you either return to work, the policy term expires, you retire or death occurs.
Level term assurance
A policy that pays a fixed lump sum upon death during the policy term.
Mortgage life insurance
A decreasing term life insurance plan that’s designed to help protect a repayment mortgage by paying a lump sum in the event of death during the policy term. These are usually flexible plans with options available to pay insurance premiums and mortgage payments in the event of you becoming incapacitated by illness or injury.
The amount your insurer requires you to pay for cover.
Covers the cost of policy premiums during periods of unemployment due to illness or injury. Also known as waiver of premium.
Premiums are very likely to change over the term of the policy, an insurer may choose to review premiums at set intervals such as every five years.
The amount of money you are insured for from outset of a policy.
Terminal illness benefit
The sum assured from a life assurance plan becomes payable if you are diagnosed with a terminal illness where life expectancy is considered to be less than 12 months.
By placing the benefits of a policy “in trust” you can ensure that the correct person receives the proceeds. Assets held in a trust do not form part of an estate of a deceased person.
A person who assesses and classifies the degree of risk that a proposed insurance represents.
Waiver of premium
Covers the cost of policy premiums during periods of unemployment due to illness or injury. Also known as Premium Protection